Finland

Investing

FDI in figures

FDI inflows to Finland (PDF) increased from USD2.9 billion in 2003 to USD3.7 billion in 2004, primarily due to a reduction in net intra-company debt flows from -USD134 million in 2003 to USD1.2 billion in 2004. In 2001, there was a total of 2,448 affiliates of foreign transnational corporations in Finland. They accounted for sales EUR79.801 billion in 2002.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	3,003	4,507	3,706
FDI inward stock (millions USD)	n.c.	n.c.	64,173.0
Performance Index*, world ranking	70	80	96
Potential Index**, world ranking	13	14	n.c.
Number of Greenfield investments	32	35	41
FDI inwards (in % of GFCF)	8.6	12.2	9.2
FDI stock (in % of GDP)	n.c.	n.c.	30.5

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.

Why you should choose Finland

Strong points: - One of the most competitive economies in the world according to WEF Global Competitiveness Report 2007-2008;
- The least corrupt country in the world, Transparency International;
- Number three globally in R&D spending per capita;
- Strategic geographic position in the expanding markets of Northern Europe.

For more information please visit the Invest in Finland website.
Weak points: Corporate taxation and limited opening hours.
Government measures to motivate or restrict FDI: Finland welcomes foreign investment and as an EU member state has removed almost all restrictions on FDI. The few remaining restrictions mainly concern favoring FDI from EEA area.
Bilateral investment conventions signed by Finland: Finland is a signatory to 56 conventions.

Administrative procedures relative to foreign investment

Freedom of establishment: Guaranteed
Acquisition of holdings: Possible
Obligation to declare: Certain acquisitions of large Finnish companies may require follow-up clearance from the Ministry of Employment and the Economy in accordance with the act on the control of foreign acquisitions of Finnish companies. The purpose of the clearance is to protect essential national interests.
Competent organization for the declaration: Ministry of Employment and the Economy
Requests for specific authorizations: A non-EEA person or company operating in Finland must obtain a license or a notification when starting a business in the regulated forms of trade such as banking and insurance sector.